Red mud (RM) is a by-product of bauxite processing via the Bayer process. Its disposal remains an issue of great importance with significant environmental concerns. In the past decades, a lot of research has been done to utilize red mud for environmental-benign applications such as a building material additive and for metal recovery. In recent years, red mud has also been explored for gas cleaning and wastewater treatment. In this paper, we review varying novel applications of red mud as a coagulant and adsorbent for water and gas treatment as well as catalyst for some industrial processes. The environmental compatibility of red mud is discussed. Some directions of future research are also proposed. Red mud presents a promising application in water treatment for removal of toxic heavy metal and metalloid ions, inorganic anions such as nitrate, fluoride, and phosphate, as well as organics including dyes, phenolic compounds and bacteria. In addition, red mud can also be employed as catalysts for hydrogenation, hydrodechlorination and hydrocarbon oxidation. Moreover, leaching and eco-toxicological tests indicate that red mud does not present high toxicity to the environment before or after reuse.